Severance Pay Cap Amount (July – December 2025 Period)

Severance pay is one of the most important workers’ rights in Turkish labor law. Regulated under Article 14 of Labor Law No. 1475, severance pay is a legal entitlement that workers can claim from their employer when their employment contract ends under specific conditions. However, there is a legally established upper limit on the severance pay that can be paid to workers, known as the severance pay cap.

For July 2025, the current severance pay ceiling amount has been announced by the Ministry of Labor and Social Security.

1. Legal Basis of Severance Pay Ceiling

The severance pay cap is explicitly regulated by law and is applied together with the principle of interpretation in favor of the employee.

You can review our severance pay article to learn about workers’ general rights on this matter.

• Article 14/13 of Labor Law No. 1475 (amended by Law No. 2762): “The annual amount of severance pay shall not exceed the maximum retirement bonus payable to the highest civil servant for one year of service.”
• Law No. 2320 (12.09.1980 – 31.12.1982 period): During this period, the annual amount of severance pay could not exceed 7.5 times the 30-day minimum wage.
• Republic of Turkey Retirement Fund Law No. 5434 – Social Insurance and General Health Insurance Law No. 5510 Temporary Article 4: The indicators and rates used in retirement bonus calculations are taken as the basis for determining the severance pay cap.

🔗 Resmi Kaynak: Çalışma ve Sosyal Güvenlik Bakanlığı – Kıdem Tazminatı Tavan Miktarı

2. Severance Pay Ceiling as of July 2025

As of 01.07.2025, the severance pay ceiling is calculated with the following formulas:

• Monthly Indicator: 1.500 x 1,170211 = 1.755,32 TL
• Additional Indicator: 8.000 x 1,170211 = 9.361,69 TL
• Total Indicator of Seniority Pension: 500 x 1,170211 = 585,11 TL
• Base Monthly Indicator: 1.000 x 18,316014 = 18.316,01 TL
• (Monthly Indicator + Additional Indicator) x Coefficient x 215%: 23.901,56 TL

📌 Total: 53,919.68 TL (maximum severance pay ceiling for one year of service in 2025)

3. Comparison with Prior Period (January 2025 – July 2025)

• 01.01.2025 – 30.06.2025 period ceiling: 46.655,43 TL
• 01.07.2025 – 31.12.2025 period ceiling: 53.919,68 TL

➡️ As can be seen, the severance pay ceiling was increased by approximately 15.6%.

4. Importance of Severance Pay Ceiling

• For employers, it sets the upper limit for severance payments to be made to departing employees.
• For workers, it shows the maximum annual amount of severance pay they will receive for long-term employment.
• Although the principle of interpretation in favor of the employee applies in labor law, the ceiling amount is the legal limit and cannot be exceeded.

5th Case Example: Severance Pay for a 10-Year Employee (2025)

Scenario: An employee leaves their job under legal conditions after working continuously at the same workplace for 10 years.

• Calculation after 01.07.2025 based on the current ceiling: 10 years x 53.919,68 TL = 539.196,80 TL

This is the maximum severance paythat can be paid even if the gross wage of the worker is higher.

6. Question and Answer

7. Conclusion and Legal Support

The severance pay ceiling is of great importance for both workers and employers. As of July 2025 , the maximum amount of severance pay that can be paid for one year of service is determined as 53,919.68 TL.

For more information and legal advice, please contact the lawyers of MFY Legal | Law Office.

👉 Contact MFY Legal now for expert legal support tailored to you.